Leading Crowdfunding Industry Analyst Firm, Crowdfund Capital Advisors, States Now is the Time to Update the Regulation to Further Enable Capital Formation
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filed by a company (issuer) with the SEC before starting to raise capital and discloses financial information for its current and prior fiscal years) as well as a Form C-U (a progress report that an issuer files that discloses total capital raised).
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
RentUs.com Seeks Equity Crowdfunding via Wefunder to Reinvent the Rental Industry
11 MayInvesting in Rentus.com Provides an Investment Opportunity for Non-Accredited and Accredited Investors to Buy into the $60 Billion U.S. Rental Industry for as Little as a $100 Investment
Los Angeles, California – Rentus.com, the leading online and mobile rental marketplace is launching a Crowdfunding (Reg CF) campaign on the Wefunder equity crowdfunding platform. The crowdfunding campaign allows anyone to become an investor and get in at the ground floor for as little as $100.
Investing in Rentus.com Provides an Investment Opportunity for Non-Accredited and Accredited Investors to Buy into the $60 Billion U.S. Rental Industry for as Little as a $100 Investment
Rentus.com is a website and mobile app available on Apple iOS iTunes store that allows people to shop, compare and rent anything. And users can also make extra income by renting out items they already own.
Rentus.com is targeting the enormous rental industry estimated to be $60 billion strong in the US alone.
With the crowdfunding campaign, Rentus.com is allowing potential investors to get in at the ground floor giving them the opportunity to make money off their investment as Rentus.com grows and expands.
To date, the Sharing Economy has produced very lucrative returns. For those that got in at the ground floor of Uber and Airbnb it turned $1,000 investments into $15 million for Uber and $10 million for Airbnb.
“The rental industry is old-fashioned, out-of-date and needs an upgrade, just like the taxi industry did not too long ago,” said Rentus.com’s CEO, Elias Chavando. “Rentus.com is giving it a new life by providing a technology up to create a brand new online, interactive, and accessible marketplace. Rental companies can now have online reservations and will be able to attract new customers while using our system as their back-end inventory system.”
Rentus.com is a mobile and online rental marketplace where people can rent just about anything. From tools and equipment, to party supplies and camping gear. Rentus.com is tapping into the rising trend of a sharing economy to bring the person-to-person rental industry to a user-friendly and trusted platform. For companies, already in the rental business, it provides efficient access to consumers.
“With the crowdfunding campaign, we are giving our users and crowdfunding investors an opportunity to get into the process early on as we continue to grow our business,” Chavando added. “It’s an opportunity for those that missed out on their chance to invest with Uber and Airbnb to buy into the the next wave of the sharing economy.”
Unlike traditional crowdfunding campaigns on platforms like Kickstarter and Indiegogo, regulation crowdfunding through Wefunder enables campaign supporters to purchase an equity stake in Rentus.com and share in the rewards when the company goes on to future financial success.
“Rentus.com provides us with an additional source of leads and a consolidated portal where our clients go to find what they need,” said Dan Toomey, Pro HD Rentals’ President. “Understanding our need for additional sources of revenue was very attractive and led to our decision to become a client. Understanding the huge need for a platform like Rentus.com also convinced me become an investor.”
Rentus.com is available online at Rentus.com and the Rentus.com mobile app is available for iOS on the iTunes store. To learn more about the crowdfunding campaign and to invest, please visit Wefunder.com/rentuscom
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation, rewards and equity crowdfunding campaigns.
New Dual-Purpose, CoolPV Solar Panels Raised $195k During 1st Week on Wefunder’s Equity Crowdfunding Website
11 AprJust as a radiator uses water to cool a car engine while driving, CoolPV solar panels transfer heat to water, which cools them down and makes the solar PV cells much more efficient at turning the sun’s energy into free, clean electricity
Chico, California – FAFCO Inc., a leading solar thermal manufacturing company that’s been creating innovative products since 1969, last week announced the launch of the company’s first equity crowdfunding campaign that is selling equity shares in the company to both accredited and non-accredited investors for investments starting at $500.
CoolPV generates up to four times the power of PV alone and can convert 60% of the sun’s energy into usable power compared to approximately 20% for PV alone
CoolPV is an enhanced solar electric panel that generates electricity and heats water using the same panel on the same valuable solar roof space. Including the thermal energy, CoolPV generates up to four times the power of PV alone and can convert 60% of the sun’s energy into usable power compared to approximately 20% for PV alone. For the past eighteen months, customers across the U.S. have used CoolPV to heat their pools and power their homes.
CoolPV Delivers up to 4x the Power of Stand Alone Solar Panels
Swimming pools are just a start. Over 33% of the energy used in the US is directly consumed for heating water and spaces. Nine million water heaters are replaced in the US every year. There are many other commercial and industrial applications where CoolPV can be used to offset a significant portion of the energy we use in the US for heating fluids.
“After more than ten years of development, we were finally able to combine a PV module with one of our engineered polymer heat exchangers and create a commercially viable combined solar thermal and solar electric panel. In addition to heating their pools, the electric power generated by the solar panels in CoolPV can reduce a customer’s electrical bill by 50% or more,” said Freeman Ford, FAFCO’s Chairman. “Now accredited and non-accredited investors can invest in the solar industry’s latest innovation and help us expand our extensive dealer network that we’ve built over the past 47 years.”
FAFCO’s CoolPV crowdfunding campaign has great timing as more and more investors are seeking to invest venture capital into the solar, wind and the renewable energy sector, which set new records for annual capacity being added, number of new investors entering the marketplace and the amount of investment dollars, which exceeded $280 billion. In addition, $12.8 billion was invested publicly traded renewable energy companies during 2015.
To make an investment in this new leading-edge, solar technology, please visit the company’s equity crowdfunding page at: https://wefunder.com/fafco
FAFCO is one of the leading solar thermal manufacturers and has been producing solar water heating systems since 1969, with an installed base of approximately 200,000 customers. Its products include solar thermal systems for homes, pools and commercial applications, as well as thermal energy storage.
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation, rewards and equity crowdfunding campaigns.
SEC Issues Progress Report on United States Title III Equity Crowdfunding Growth Rate
15 MarApproximately 163 separate offerings were filed by 156 issuers, seeking a total of approximately $18 million
Washington, DC – The SEC just released a white paper entitled, U.S. securities-based crowdfunding under Title III of the JOBS Act, which analyzes crowdfunded offerings during the first six months following May 16, 2016 when Title III, Regulation Crowdfunding become official. The SEC’s white paper, which was prepared for Scott Bauguess, the Acting Chief Economist and Acting Director of the Division of Economic and Risk Analysis (DERA), noted that the majority equity crowdfunding offerings to date have not utilized Regulation D as much as predicted.
Top 20 Title III Equity Crowdfunding Sites in U.S.
The white paper does go into great detail about five largest Title III crowdfunding portals based on the number of offerings, which accounted for 71% of the offerings launched during 2016. The five largest Title III crowdfunding sites also accounted for 64% of the total amount of funds raised. And while more 20 crowdfunding sites were listed, most of the offering activity was limited to 25% of active platforms in the Title III crowdfunding marketplace. And, if you ran the numbers for completed offerings, you would see that the top five largest intermediaries accounted for more than 90% of the market share.
The table below low shows the list of the Top Performing Title III Crowdfunding Portals sorted on the number of initiated offerings and then by the target amounts of the initiated offerings, excluding offerings withdrawn as of December 31, 2016.
Top 20 Title III Equity Crowdfunding Sites Ranked by Number of Offerings
Most Successful Types of Title III Equity Crowdfunding Campaigns
Many people want to know what the types of Title III crowdfunding campaigns were the most successful. Preferred Equity led the pack at 36%, followed bySimple Agreements for Future Equity at 26%, Debt at 20%, Units at 7%, Convertible Notes at 6% and Miscellaneous accounted for the remaining 5%, which included Revenue Sharing and Membership / LLC Interests.
Distribution of Title III Equity Crowdfunding Offerings
Top States for Launching Title III Equity Crowdfunding Campaigns
Another interesting way to look at growing crowdfunding industry is to examine what states launched the most successful Title III Equity Crowdfunding Campaigns. In the table below you can see that California/Silicon Valley launched the most Title III crowdfunding campaigns, followed closely by Texas/Silicon Hills at 19%, New York at 14%, Massachusetts and Illinois tying at 9%, Delaware, Florida, New Jersey, Oregon, and Pennsylvania bringing up the back to the pack, all with 5%.
States with the Most Title III Equity Crowdfunding Campaigns
How Many Reg. D and Title IV, Reg. A+ Crowdfunding Offerings Result?
Because many industry experts have stated their concerns that the SEC’s decision to severely restrict the general solicitation guidelines with regards to advertising their crowdfunding deals to the masses of non-accredited investors, the white paper also took a close look at how many Title III Regulation Crowdfunding Campaigns had previously or subsequently conducted an offering under Regulation D or Regulation A.
As shown in the table below, as of January 15, 2017, approximately 15% of offerings initiated during 2016 (excluding withdrawn offerings) were by issuers that have also reported offerings under Regulation D either before or after the initial crowdfunding filing. And, approximately 3% of issuers have issued Regulation A+ filings as of January 15, 2017.
Among crowdfunding issuers, approximately 12.9% of offerings were by issuers that had filed the first Form D notice prior to the first crowdfunding filing and approximately 2.5% of offerings involved issuers that had filed a Form D notice after the first crowdfunding filing. For about 8.6% of offerings, excluding withdrawn crowdfunding offerings, a Form D filing was made within one calendar year before or after the initial crowdfunding filing. Consistent with their young age, the SEC determined that the majority of the crowdfunding issuers were more likely to be new startups rather than “fallen angels.”
Overall, these results suggest that crowdfunding is attracting issuers that have not extensively used other private offering exemptions, such as Regulation D, which is otherwise a very popular private offering exemption among similarly sized issuers as those initially availing themselves of the Crowdfunding market. The initial evidence is points to the fact that Title III, Regulation Crowdfunding is indeed providing a new source of capital for entrepreneurial and small businesses that may not otherwise have had access to capital through alternative capital raising channels.
Form D and Title IV, Reg A+ Equity Crowdfunding Offerings
The white paper also made a point of covering the following facts and figures.:
- There were 163 separate offerings by 156 issuers, seeking a total of approximately $18 million, excluding withdrawn offerings. The median offering amount was $53,000 and the average offering amount was approximately $110,000. However, almost all of the offerings accepted over-subscriptions up to a higher amount (typically close to $1 million) for a total amount of approximately $101 million.
- As of January 15, 2017, approximately $10 million in proceeds was raised in 33 offerings by issuers filing a Form C-U. The median amount raised in these offerings was $171,000 and the average amount raised was approximately $303,000.
- For offerings initiated in 2016, were withdrawn by issuers or associated with an intermediary whose FINRA membership was terminated and funding portal registration withdrawn. These offerings sought a total of approximately $2.3 million (approximately $19.5 million if over-subscriptions are included).
- Most of the offerings solicited in all states.
- The most popular type of security was equity, followed by “simple agreements for future equity” and debt.
- The most popular state of incorporation for issuers was Delaware and the most popular principal place of business for issuers was California.
- The median issuer had under $50,000 in assets, under $5,000 in cash, $10,000 in debt, no revenues, and three employees. Approximately 40% of the issuers reported positive revenue and approximately 9% of the issuers reported a net profit in the most recent fiscal year. Among the issuers that reported non-zero assets in the prior fiscal year, the median growth rate was approximately 15%.
- 21 intermediaries, including 13 funding portals and 8 broker-dealers, were involved in the offerings. As of December 31, 2016, funding portals have registered with the SEC and FINRA and one funding portal had its FINRA membership terminated and withdrew its SEC registration. The median intermediary percentage fee was 5%, and intermediaries took a financial interest in the issuer in approximately 16% of the offerings.
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
Crowdfunding PR Rolls Out Title IV, Reg. A+ 2-Month Crowdfunding Prep Work Program to Help Startups and Existing Businesses Learn How to Launch More Successful Crowdfunding Campaigns
29 AugThe Crowdfunding Prep Work Program Helps Campaign Managers Amass a Large Crowd of Followers on Social Media and Utilize PR to Generate Hundreds of News Articles on Leading Media Outlets
Austin, Texas – Want to learn how to launch a successful Title IV, Reg. A+ equity crowdfunding campaign? To help crowdfunders achieve this elusive goal, Crowdfunding PR announced a special two-month Crowdfunding Prep Work Program that will significantly improve a crowdfunding campaign’s success rate by amplifying its management team’s social media profiles and by utilizing an effective crowdfunding PR campaign to generate hundreds of stories via electronic news media outlets prior to the crowdfunding campaign’s launch.
How to Plan a Successful Crowdfunding PR Campaign by Following this Secret Step-by-Step Process
Social Media Campaigns
Conducting a strong social media marketing campaign is one of the biggest challenges that many Title IV, Reg. A+ Crowdfunding Campaigns will face. Improving weak social media credentials for companies is critical to crowdfunding success. What many entrepreneurs and startups need to recognize is how important social media is in the world of crowdfunding.
“The very first thing that an investor/donor does when they read through a crowdfunding profile they like is to look up the company and its team members on Facebook, LinkedIn and Twitter to check out their credentials,” said Robert Hoskins, Crowdfunding PR’s Director of Crowdfunding Campaigns. “Having a strong resume on LinkedIn, lots of likes on Facebook and an army of followers on Twitter is crucial to determining the strength of the team and the likelihood that they have the tenacity and marketing skill set to deliver on their crowdfunding campaign’s promises.”
Public Relations/Publicity Campaigns
The second biggest task is generating stories on electronic news media outlets and blogs prior to launching a crowdfunding campaign. Not only can a well-orchestrated crowdfunding PR campaign generate hundreds of free, positive trade press articles to support the fundraising effort, but the same targeted, search-engine-optimized (SEO) press releases will continue to drive new investors, potential customers as well as sales/distribution partners to the business long after the crowdfunding campaign ends.
“Most investors/donors will do a Google search to see what they can find online for both the company and its team members,” Hoskins continued. “With a two-month crowdfunding prep work campaign there will be several pages of search engine results that link to the client’s website pages, their social media posts/profiles and the crowdfunding campaign’s temporary landing page until they launch an equity crowdfunding campaign on SeedInvest.com, StartEngine.com, Republic.co, WeFunder.com or any other Title IV, Reg. A+ equity crowdfunding sites.
Contact Crowdfunding PR
If you would like to speak with a crowdfunding PR, social media and/or marketing expert regarding your crowdfunding campaign, please call Robert Hoskins at (512) 627-6622.
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(512) 627-6622
@Crowdfunding_PR
Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
Mr. Hoskins consults on a regular basis with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Mr. Hoskins is one of the crowdfunding industry’s foremost crowdfunding advocates and has amassed a huge social media following that is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns. Due to the overwhelming demand from the general public for crowdfunding information, he empowers entrepreneurs with some of the internet’s most affordable ($20) online crowdfunding training classes, which provide insight to startups around the world on a 24 x 7 basis.
Legion M Closes Over-Subscribed, Record-Setting $1 Million Equity Crowdfunding Campaign on Wefunder Portal
16 AugWorld’s first fan-owned entertainment studio leads the JOBS Act field with 3,000+ investors and significant demand above and beyond the $1 million cap allowed by the SEC’s JOBS Act Regulation CF
Silicon Valley, CA – Legion M, the world’s first crowdfunded and now fan-owned entertainment company, announced they have raised one million dollars via their Title III crowdfunding offering on Wefunder. The Company raised the funds in less than three months from a record breaking 3,000+ investors, making it the most popular Reg CF company in the short history of Title III of the JOBS Act. At the time of closing, Legion M was also the number one company in terms of total investment interest and demand, with significantly more demand above and beyond the $1 million dollar funding cap allowed by the SEC, which leaves outstanding appetite for Legion M stock even after the round is closed.
Legion M Closes Oversubscribed, Record-Setting $1 Million Equity Crowdfunding Round on Wefunder
“Legion M shareholders worldwide are celebrating this significant milestone we achieved together. We are truly inspired by their energy, passion and unbridled support. This Legion of dedicated fans have rallied behind us and our movement to make our mark entertainment industry,” said Paul Scanlan, CEO and co-founder of Legion M. “We are grateful to the JOBS Act for the innovative reforms that make this possible. Today we made history, and this is only the beginning.”
Legion M’s creative partners currently include Stoopid Buddy Stoodios, the team behind Robot Chicken, 42 Entertainment, Meltdown Comics and Alamo Drafthouse.
“I was impressed with how Legion M’s fans rallied to help them hit the one million dollar milestone eight days early,” said Nick Tommarello, CEO and co-founder of Wefunder. “We designed Wefunder for companies looking to build a stronger relationship with their most passionate customers, who are eager to help their favorite companies succeed. It was great to see how well it worked with Legion M’s well over three thousand investors.”
“With more than three times the number of investors as any other Reg CF offering, Legion M has set the bar for Title III,” says Sara Hanks, a definitive authority on the JOBS Act and CEO of equity crowdfunding specialists CrowdCheck. “The real power of equity crowdfunding is having an investor base that can increase the value of your company, and Legion M is one of the best illustrations of that so far.”
“Having raised in excess of $100 million from VCs and angel investors for previous companies, we can attest that equity crowdfunding is a game changer,” said Jeff Annison, Legion M president and co-founder. “It’s not just a way to raise money–it’s a whole new paradigm for building a company.”
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Weekly Update 6/13 – Top 10 Title, Crowdfunding Regulation Offerings Update Report
13 JunTop 10 Equity Crowdfunding Campaigns Have Raised $711,196 Since May 16th Using Title III, Regulation Crowdfunding
Austin, Texas – Here is a update of the first round of Title III, Regulation Crowdfunding campaigns that launched on May 16th, almost a month ago. In aggregate, the crowdfunding campaigns have raised $711,196. And that figure would be much higher if we included the all 40 of the equity crowdfunding campaigns that have been approved by the SEC for issuing Title III offerings.
To give crowdfunders an idea of which platform is raising the most money, we added up the totals for each platform and so far, WeFunder is ruling the roost with 61% of all money raised:
- WeFunder.com $433,094
- NextSeed $112,500
- StartEngine $91,302
- SeedInvest $74,300
Total: $711,196
Why are some companies raising a lot of money and others are struggling? It comes down to how much money these crowdfunding campaigns are spending on marketing. Its hard to raise money unless campaigns are spending money on advertising, email, PR, social media and website marketing to raise awareness for their campaign and its products or services. Simply listing a campaign on a fundraising portal is not enough and why 60% of rewards-based campaigns fail.
For example, check out the profiles below to see their company websites, their social media credentials on Facebook, LinkedIn and Twitter and then Google their founders names and company names to see what they have done to promote their company in the news media.
It will be easy to see what management teams have done the proper prep work and planned effective marketing campaigns and which teams haven’t even been able to cobble together a simple company website.
If a management team can’t build a simple website, how in the world can they run a successful business?
One founder commented that, “They didn’t build a website because they wanted everyone to focus on their crowdfunding campaign profile.”
Most investors will read everything they can about the company, their products/services, news stories, research reports, industry analysts projections for the marketplace, etc., etc.
The goal should be to provide enough information to remove all the fear, doubt and uncertainty from the investment sales equation and give them the urge to invest before they even start reviewing the SEC financial disclosure information on the crowdfunding portal’s website.
For example, let’s take at look at NextRX. They are on the StartEngine platform.
The good news is that they have a website, but not one shred of industry facts, figures or industry growth projections to support the fact that the Medical and Recreational Marijuana industry is currently the fastest growing industry in the United States and is expected to reach more than $22.8 billion in revenue in the next 4 years. Not one single fact about the 16 additional states that will probably sign new cannabis regulations into law during 2016 that will take the U.S. from 4 legal markets to more than 20.
Is providing some research on local or national marijuana industry markets important? Hell yes.
As an investor, I want to know, in detail, about my possibility of earning a nice return-on-investment for buying shares in their company. I would love to say this is why they haven’t raised any money, but its not. A smart investor relations team would use their current banking problem and turn it into an opportunity to expose the hurdle they face with setting up an escrow account and use the example to try and put more pressure on the financial banking system and the U.S. Government to remove marijuana as a Class One drug so banks don’t have to worry about breaking federal law.
Why not provide a Marijuana Pitch Video like this one? It practically makes the investor want to jump in before it’s too late! If the big investors are doing it, then I certainly don’t want to miss out on the next big industry that is almost guaranteed to boom in the U.S.
Why not include a Marijuana Industry Analyst Report like this that projects a $22.8 billion industry in the next 4 years. It would be kind of like investing in a liquor company right before prohibition ended.
As a reporter, perhaps I want to write a story based on the marijuana’s industry’s potential growth. But the company’s management team has failed to provide a media kit with company backgrounders, executive head shots, bios, press releases, market research, white papers, photos, graphics, etc., which means they are very inexperienced business executives and have never worked in a big corporation. To me this means this company will mostly likely fail as business because they certainly do not understand marketing, which is the key to all sales growth.
6/13 Weekly Title III, Crowdfunding Update:
1. Taxa Biotechnologies (genetic plant engineers)
Crowdfunding Platform: WeFunder
Amount Raised: $221,115
2. The Legion M Entertainment (media company)
Crowdfunding Platform: WeFunder
Amount Raised: $188,229
3. Native Hostel Austin (Luxury hostel in Austin
Crowdfunding Platform: NextSeed
Amount Raised: $112,500
4. MF Fire (an app-drive, low emissions wood stove)
Crowdfunding Platform: SeedInvest
Amount Raised: $63,300
6. Gigmor (Connecting bands with venues and gigs)
Crowdfunding Platform: StartEngine
Amount Raised: $17,505
8. Treasure State Internet (fiber optic installation)
Crowdfunding Platform: WeFunder
Amount Raised: $11,800
9. GameTree (Social network for gamers)
Crowdfunding Platform: StartEngine
Amount Raised: $11,060
12. NextRX Inc (Medical marijuana network pass)
Crowdfunding Platform: StartEngine
Amount Raised: $0 (on hold because escrow account closed by bank)
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Top 10 Title III, Regulation Crowdfunding Offerings Ranked on the Amount of Crowdfunding Raised
18 MaySearching for the Hottest New Title III, Regulation Crowdfunding Investment Opportunities?
For fun, we thought we would keep track of the first wave to Title III, Regulation Crowdfunding Offerings to see who has raised the most money to date. The current crowdfunding campaigns are ranked in order by the amount of money they have raised as of May 24, 2016 at 4:00 pm.
After the first week, it looks like crowdfunding campaigns with lower investment amounts far outpaced larger investment requirements. The same is true of lower crowdfunding investment goals. For example, GameTree has a minimum investment of $100 and a fundraising goal of $100,000 and barely two weeks into their campaign they are 90% funded.
If you’d like shop around and make your first non-accredited investment in a Title III, Regulation CF offering, please review from the offers listed below.
You might also check out their company websites, their social media credentials on Facebook, LinkedIn and Twitter and then Google their founders names and companies to see what they have done to promote their company in the news media.
It will be easy to see what management teams have done the proper prep work, planned effective marketing campaigns and the others that haven’t even been able to put together a simple company website.
If they can’t build a simple website, how in the world can they run a successful business?
Here is also a quick snapshot of what Title III Crowdfunding Platforms have raised the most money:
- WeFunder.com $243,871
- StartEngine $142,602
- SeedInvest $74,800
- NextSeed $26,900
Total: $461,273
1. The Legion M Entertainment (media company)
Crowdfunding Platform: WeFunder
Amount Raised: $120,611
2. Taxa Biotechnologies (genetic plant engineers)
Crowdfunding Platform: WeFunder
Amount Raised: $111,860
3. MF Fire (an app-drive, low emissions wood stove)
Crowdfunding Platform: SeedInvest
Amount Raised: $40,900
4. Native Hostel Austin (Luxury hostel in Austin
Crowdfunding Platform: NextSeed
Amount Raised: $26,900
7. Treasure State Internet (fiber optic installation)
Crowdfunding Platform: WeFunder
Amount Raised: $8,800
9. Gigmor (Connecting bands with venues and gigs)
Crowdfunding Platform: StartEngine
Amount Raised: $14,905
12. NextRX Inc (Medical marijuana network pass)
Crowdfunding Platform: StartEngine
Amount Raised: $0
SEC Lifts Ban on General Solicitation; Implements First Phase of JOBS Act for Reg. D, Title II Accredited Investors
22 SepSEC Lifts 80-Year Ban on the General Solicitation of Private Placement Equity Investments
Today, the United States finally inched its way toward the full implementation of the JOBS Act passed in April 2012, required by federal law to be in place by January 2013, but still not fully realized as intended by President Obama and the both houses of the U.S. Congress.
SEC Crowdfunding Call for Comments on November 15, 2013
“We want this new market and the private markets in general to thrive in a safe and efficient manner, and these rules we adopted and proposed are designed to facilitate that objective,” said Mary Jo White, Chairwoman of the SEC. “As we fulfill our mission to facilitate capital formation and maintain fair and efficient markets, the Commission must always focus on strong investor protections.”
Until the general solicitation ban was lifted, hedge funds, VCs, and startups had to quietly raise that money, soliciting by word of mouth and other forms of private communication. Now companies can buy ads, launch PR campaigns, leverage social media and openly announce that they’re seeking investors.
The addition of general solicitation is expected to fuel a new cottage industry of investor matching-making websites that aim to broaden the investment pool to financial stalwarts outside the stanchly protected investment circles of Silicon Valley.
“With general solicitation it will be much easier for investors to find companies they are passionate about supporting,” said Mike Norman of crowdfunding website, WeFunder. The new rule will hopefully open up the capital-starved startup market to the majority of investors. According to WeFunder’s website, only 3% of the US’s 8 million accredited investors are active in the tech startup space.
For example, leading startup investing platform, RockThePost, announced last week that its equity crowdfunding website will provide the following equity crowdfunding investment services:
- Prominent featuring of startups publicly announcing investment rounds
- Investor verification system that shifts the burden off startups
- Secure transactions where Escrow accounts act as a safe haven for early committed investors
- Full transparency – third party identity checks and legal business verification, crowdsourced due diligence, bank-level security
- Smart matching of investors to startup investments that match their preferences
Equity crowdfunding sites such as Angelist, Circleup, Crowdfunder, FundersClub, RockThePost and Wefunder are important the nascent industry because according to the Center for Venture Research, only 258,000 investors have made an angel investment out of the 8.7 million accredited investor households eligible to invest in the U.S.
The general solicitation ban lift will allow startups to publicly fundraise via methods such as equity crowdfunding, harnessing the power of the internet and social media to reach potential investors in all corners of the country.
According to a Forbes article, many states have decided not to wait on the SEC. Kansas, the first state to enact laws requiring the registration of sales of securities to the general public 100 years ago, turned out to be the first in the U.S. to enact an “intrastate” Invest Kansas Exemption law. The state of Georgia passed the Invest Georgia Exemption that provides even more freedom for crowdfunding than the Kansas exemption. North Carolina’s House passed a crowdfunding bill that is expected to move to the full legislature in an updated form and be signed into law next year. The state of Washington is currently teeing up crowdfunding legislation and other states will likely follow suit.
Tanya Prive, a co-founder of RockthePost, points out that “One of the other issues I’ve seen is that there are plenty of startups with a large customer base that they cannot tap into for capital support under existing regulations. These people are the biggest fans and evangelists of the brand, who might be first in line to invest. Once the user base is able to engage with their beloved company in fundraising mode via an investment crowdfunding platform, the company will be able to capitalize on the crowd’s interest in their success and accelerate the fundraising process by converting customers into investors.”
“So although there are strings attached to the ruling, lifting the ban on general solicitation – an 80-year-old rule – will help investors connect with entrepreneurs, and vice versa. The decision also weighs in the favor of entrepreneurs and investors who live outside places like Silicon Valley, where old-school networking and personal connections are how financing deals typically happen,” said Eric Markowitz, crowdfunding reporter for Inc. Magazine. “By lifting the ban, entrepreneurs living outside traditional tech hubs may find it easier to connect with investors, raise money, and grow their start-ups without having to necessarily relocate.”
Although large players like private equity firms Bain Capital and Blackstone Group LP could take advantage of the chance to use television ad campaigns, many lawyers and regulators close to the industry have said that they expect smaller funds with fewer resources to test the new rule first.
“By allowing issuers to solicit to a broader group of potential investors, the SEC has showed its commitment to democratizing the investing process and putting an end to yesterday’s ‘old boy’ investor networks,” said Barry Silbert, founder and chief executive of SecondMarket Inc., a marketplace for private shares.
The next important date to watch for is October 31, 2013, when the 2nd wave of SEC crowdfunding guidelines are expected to be issued for Title III investors that will allow unaccredited investors to participate in private placement investments.
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More News on the SEC’s New General Solicitation Rules:
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SEC Lifts Ban On General Solicitation, Allowing Startups
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SEC Approves JOBS Act Requirement to Lift General Solicitation Ban
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Starting Today, Startups Can Broadcast Their Fundraising From the Rooftops
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The General Solicitation Ban Lift Can Change Startup Investing Forever
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Crowdfunding Will Flourish Regardless Of What The SEC Does
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Game Changer: SEC Lifts General Solicitation Ban
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Boon for Start-ups: SEC Lifts Ban on General Solicitation
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SEC lifts longtime advertising ban for hedge funds, others
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SEC Lifts Ban on General Solicitation in Certain Private Placements
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S.E.C. Lifts Advertising Ban on Private Investments
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SEC Votes to Ease 80-Year-Old Ban on Private-Investment Ads
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SEC Lifts Ban on Hedge Fund Ads
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SEC Lifts 80-year-Old Ban on Advertisements for Private Investors
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SEC lifts advertising ban on private investments: How it affects you
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SEC Votes to Lift Ban on Hedge Fund Advertising
Top 100 Crowdfunding Sites for Equity-based, Rewards-based, Perks-based and Donation-based Fundraising Campaigns
2 JunClick Here to Review the 2015 Top 10 Rated Crowdfunding Sites to Help Anyone Launch a Fundraising Campaign to Raise Money to Bring Creative New Business Ideas to Fruition
Austin, Texas – Thinking about launching a Crowdfunding campaign to raise money to fund your creative business idea and bring it to fruition? The Crowdfunding Press Center provides regular news reports on new Crowdfunding sites that have opened their doors to help entrepreneurs and small businesses launch fundraising campaigns to help bring their ingenious business ideas to fruition.
Top 10 Crowdfunding Sites for 2014
The big question that most crowdfunding campaign managers want to know is what crowdfunding site is the best to launch their fundraising campaign? Kickstarter vs. Indiegogo, which crowdfunding site is better? Or would one of the other crowdfunding sites outlined below be a better match for their precise crowdfunding goals and objectives.
Directory of Recently Launched Crowdfunding Sites: [Click to Tweet]
- 99Funding
- AlumniFunder
- BanktotheFuture
- Bellavate
- Big-Concepts
- ClickStartMe
- cMEcompete
- Crowd Valley
- Crowdcube
- Crowdfund It Today
- Crowdfunder
- Crowdit
- CrowdTilt
- Foodstart
- Fundable
- FunderHut
- Fundly
- give2gether
- GivetoBenefit
- iCrowd
- KrowdKidz
- Launcht
- Mini America
- PiggyBackr
- Pik a Venture
- PledgeCents
- RockthePost
- Seed&Spark
- SeedInvest
- Start a Cure
- Sterlingfunder
- UInvest
- VentureHealth
- WeFunder
- YouCaring
Directory of the Top Rewards-Based Crowdfunding Sites: [Click to Tweet]
- ArtSpire
- Crowdtilt
- Feed the Muse
- FunderThunder
- IndieGoGo Crowdfunding
- iPledg
- Kickstarter Crowdfunding
- MassiveMov
- RocketHub
- Springboard
- TechMoola
Directory of the Top Disaster-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Non-Profit-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Music-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Film-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Design-Based Crowdfunding Prototyping Sites: [Click to Tweet]
Directory of the Top Sports-Based Crowdfunding Sites:
Directory of the Top Publishing-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Photojournalism-Based Crowdfunding Sites
Directory of the Top Arts & Crafts-Based Crowdfunding Sites:
Directory of the Top International-Based Crowdfunding Sites: [Click to Tweet]
- Buzz Entrepreneur – France
- Fund R Venture – United Kingdom
- Geldvoorelkarr – Netherland
- Indulu.be – Hungary
- New Jelly – Norway
- PPL – Portugal
- Starteed – Italy
- The Crowd Angel – Spain
- Ulule – France
- WazoKu – United Kingdom
- WEBclusive – Netherlands
Directory of the Top Crowdfunding Accelerators, Boot Camps, and Incubators:
- AlphaLab
- Capital Factory
- DreamIt Ventures
- Good Company Ventures
- Junto Partners
- Seed Hatchery
- TechStars
- Y-Combinator
Directory of the Top Lending-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Donation-Based Crowdfunding Sites: [Click to Tweet]
Directory of the Top Equity-Based Crowdfunding Sites: [Click to Tweet]
- ASSOB
- Angel List
- AppsFunder
- CircleUp
- EarlyShares
- FundedbyMe
- GrowthGroup
- GrowVC
- I-Bankers Direct
- inCube Ventures
- MicroVentures
- OurCrowd
- Pozible – Australia
- Quirky
Directory of White-Label Crowdfunding Site Providers: [Click to Tweet]
- CrowdfundHQ
- CrowdfundingSite
- Crowd Fund Magic
- Crowdforce
- Crowdhoster
- Crowdtilt
- Fundrazr
- Hayduke Labs
- IgnitionDeck
- Invested.in
- Katipult
- Launcht
- Mimoona
- Selfstarter
- Thrinacia
- Towema.com
Directory of the Top Securities-Based White-Label Crowdfunding Site Providers: [Click to Tweet]
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